Hotelier’s job insecurity rising

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The percentage of hoteliers who have job insecurity has increased vastly over the years.

In the 2015 edition of Hotelier Middle East Salary Survey, 23.8% of the participants said they felt more insecure than 12 months ago. According to this year’s survey, 38.8% have voiced the same opinion.

Various sources have told Hotelier Middle East that the primary reason behind this is the current job market, which is inconducive to new opportunities for people looking to make a career in hotels. Many participants in the survey reported about the pay freeze in their companies.

Six Senses Zighy Bay Resort Manager Greg Kocis is of the view that the next few months have a positive vibe to them and will turn out to be more productive. While commenting on the issue, he added, “The perception about the region is mixed because of the sad events over the last few months.”

This perception could be why hoteliers have such little confidence. In 2014, 20.7% of the participants said they feel more secure than they did 12 months ago. In 2015, it went down to 13.5%. This year, it has gone further down to 11%.

When it came to ADRs and occupancy, start of the year saw definite uncertainty but most hoteliers have expressed the sentiment that the conditions have become better from March onwards. With people making advance bookings, they are hopeful that the remaining year will turn out to be just perfect.

Because of the prevailing situation, the number of hoteliers who are anxious about keeping their jobs has trimmed down to 10.3% from 2015’s 11.1%. The uplifting point to note here is that it has not fallen to 2014’s alarming stats; merely 4.6% of the hoteliers were interested in keeping their jobs.

Last year, 18.6% of the hoteliers expressed that they were happy to remain in their current roles. This year, 18.3% have said the same.

According to Istathmir survey, people who are actively looking for new opportunities in the market make up for 35.9% of the total number of hoteliers.

In 2015, 0.5% of the respondents mentioned they were told that they were no longer needed. This year, that figure had gone up to 2.2%.

Jumeirah Restaurant Group (JRG), a homegrown management restaurant management company, made quite a few redundancies in May this year. Apart from that, the company also closed down one of its restaurants, Rivington Grill in Souk Al Bahar, which had been operating for eight years.

JRG’s spokesperson said in this regard, “As part of our strategy to optimize efficiencies and deliver on expansion plans, Jumeirah Group has re-organized its F&B division, the Jumeirah Restaurant Group. As a result, some roles are no longer required. Any changes to the structure of JRG will not impact our guests, and we will continue to offer the same exceptional food and beverage experiences”.

However, it is worth noting here that STR, an American company which tracks supply and demand data for various market sectors including the global hotel industry, has expressed that overall performance for hotels is forecasted to be positive for the year of year.

Managing Director of STR Global Robin Rossman commented that Jeddah and Dubai are showing high margins of over and beyond 40%.

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